Loan Question

[Spank]

Hopefully this is the right section of the forums for this. And hopefully this makes some sense, I just woke up 

I don't have any credit problems, but I do have a question. Early this year I needed to replace my washer and dryer. I went to a place that sold appliances with imperfections. Things that had a dent, small scratch, just whatever, but were still new and got a good deal. I paid half in cash and the other half they convinced me to get a loan through a local company. I had just planned on putting the other half on a credit card and paying it off, but I went with the loan. I never thought anything more about it, I've actually got it almost paid off in another few payments.

I recently bought a newer vehicle and I've been getting some letters in the mail as denials from some companies. On a few they've listed" Too many consumer finance company accounts". I did some googling and saw that this was related to being considered a high risk because I got a loan.

How much do I need to worry over this affecting me in the future or impacting me? Are there any steps I need to take to mitigate it from affecting me anymore than it already has? Does it get removed eventually after being paid off? I don't know how they work with the credit score honestly.

I will definitely avoid loans in the future. I had never gotten one before and I had no idea that they were considered "bad" by credit companies.

Thanks 

[Anonymous]

Hi and welcome to the forums.

It isn't because you got a loan, it is who you got the loan with.

CFL are considered to be loans for people that cannot get a loan through a bank or other normal avenue.  There are many that will shock you as they are considered CFL also.  Any rent to own, many furniture stores, Beneficial, Citi Financial, places military members can get loans like Omni and Pioneer, etc.

I didn't know this for years and had like 20 on my CRs.

As far as the impact on your score it will be minimal as you only have one.   Lenders on the other hand may view it as a negative.

No, it won't be removed.  Any account in good standing will remain for up to 10 years from the date closed.

Once it is paid, you could ask them to remove the entire TL.

[Spank]

Thank you for the reply.

When you say "ask them" do you mean the company I got the loan through to remove it after it's been paid? 

Thanks 

[Anonymous]

Yes.  I would be honest and tell them because it lists as a CFL and it is showing as a negative factor on your report.  And you have been denied credit due to the account.

They may not remove it but it is worth the shot.

[Spank]

I'll give that a go, thanks